Residential property investment: fact sheet for foreign owners

If you are a foreign person who has invested in, or plans to invest in Australian residential real estate, there are obligations you will need to meet under Australian law.

Step 1. Obtain FIRB approval

Before you purchase residential real estate, you must obtain Foreign Investment Review Board (FIRB) approval and pay a fee. To apply, complete and submit the Residential real estate application form available at ato.gov.au/rreappinstructions

Incorrect applications or information may result in delays in processing and additional charges.

Step 2. Review your FIRB approval conditions

You will generally receive your FIRB approval within 30 days. The approval letter will tell you any conditions you must follow when you purchase your property and after settlement (the date that ownership of the property transferred to you, not the sale date).

If you do not comply with these conditions, you may be liable for an infringement notice, criminal prosecution or civil penalty.

Step 3. Record your property on the ATO Land and water register

The ATO records details of purchases of residential property by foreign persons on the ATO Land and water register. As a condition of your FIRB approval, you are required to enter your purchased property on the ATO Land and water register within 30 days of settlement.

You will need to tell us your:

contact information, including an email address so that we can contact you in the future

type of registration - Select ‘Residential real estate’

reason for registration - Select ‘Transfer: buy’ and enter the settlement date (the date that ownership of the property transferred to you, not the sale date)

FIRB approval number

property details.

IMPORTANT:

Once you enter your information you will receive an ATO Land registration number, which you need to use when you lodge your Vacancy fee return.

End of example

Step 4. Lodge your Vacancy fee return

If your land has a residential dwelling on it, you must lodge an annual Vacancy fee return within 30 days of the end of every 12 month period you own it. This is called the ‘vacancy year’.

In the Vacancy fee return, you need to tell us how the dwelling was used over the previous 12 months.

We will email you a reminder to lodge your Vacancy fee return when it is due, to the email address you gave us in your ATO Land and water registration. You will need your ATO land registration number to lodge your Vacancy fee return.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.